The MARS agent
Azure Backup uses the MARS agent to back up data from on-premises machines and Azure VMs to a backup Recovery Services vault in Azure. The MARS agent can:
Run on on-premises Windows machines so that they can back up directly to a backup Recovery Services vault in Azure.
https://learn.microsoft.com/en-us/azure/backup/backup-support-matrix-mars-agent
Answer is C
https://learn.microsoft.com/en-us/azure/backup/install-mars-agent
About the MARS agent
Azure Backup uses the MARS agent to back up files, folders, and system state from on-premises machines and Azure VMs.
Installing the agent first doesn't seem correct, the question says what should you do first, so the answer might be A. "To protect on-premises workloads, the MABS server must be located on-premises, and connected to a domain". https://learn.microsoft.com/en-us/azure/backup/backup-azure-microsoft-azure-backup
You don't need to use MABS for individual workload servers, a MARS agent is fine on its own for the requirements given. https://learn.microsoft.com/en-us/azure/backup/backup-overview - "On-premises - Back up files, folders, system state using the Microsoft Azure Recovery Services (MARS) agent. Or use the DPM or Azure Backup Server (MABS) agent to protect on-premises VMs (Hyper-V and VMware) and other on-premises workloads"
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